"An "AI winter" is what folks in artificial intelligence call a period in which enthusiasm for the idea of machines that can learn and think like people wanes-and investment for AI products, companies, and research dries up. There's a reason this phrase comes so naturally to the lips of AI pundits: We've already lived through several AI winters over the 70-year history of artificial intelligence as a research field. If we're about to enter another one, as some suspect, it'll be at least the fourth."
"The most recent talk of a looming winter has been triggered by growing concerns among investors that AI technology may not live up to the hype surrounding it-and that the valuations of many AI-related companies are far too highl. In a worst case scenario, this AI winter could be accompanied by the popping of an AI-inflated stock market bubble, with reverberations across the entire economy."
"The markets have been spooked recently by comments from OpenAI CEO Sam Altman, who told reporters he thought some venture-backed AI startups were grossly overvalued (although not OpenAI, of course, which is one of the most highly-valued venture-backed startups of all time). Hot on the heels of Altman's remarks came a study from MIT that concluded that 95% of AI pilot projects fail."
An AI winter is a period when enthusiasm for machine learning and human-like thinking fades and funding for AI products, companies, and research dries up. The field has experienced multiple AI winters across its seventy-year history; a potential new downturn would be at least the fourth. Current concern stems from investor doubts that AI will meet hype, inflated valuations of AI firms, and warnings from industry leaders. Generative AI has attracted hundreds of billions of dollars, raising systemic risk. A severe decline could coincide with a bursting AI-inflated stock bubble, producing wide economic reverberations.
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